"I am delighted with our performance in 2013. During the year, we maintained the strong momentum that we have established in our core mortgages and savings business, while investing in building the banking capabilities which will enhance our future growth potential.

"In mortgages and savings, we achieved growth well above that seen across the market as a whole, improved net interest margins, controlled cost growth by leveraging our existing infrastructure and maintained a very low level of impairment losses. As a result, the underlying contribution from mortgages and savings increased by almost £100 million in the year.

"At the same time, we completed the acquisition of £1 billion of Virgin Money credit cards from our partner MBNA and made good progress on building our own cards business. We have also developed the infrastructure to support our first current account, which we are now trialling with our colleagues.

"Looking to the future, we have a powerful brand, a strong balance sheet, a strong core business franchise and through our ambition to make ‘everyone better off’, a clear set of values that live throughout our business. We are confident that we can continue to make real progress on our quest to make banking better, growing our business strongly, profitably and responsibly."

FINANCIAL PERFORMANCE SUMMARY

Results 2011-13

20111

2012

2013

(Loss)/profit before tax

Underlying £m

(59.1)

(2.5)

53.4

Statutory£m

23.5*

150.6

179.4

Total income£m

137.9*

269.0

384.5

Cost:income ratio%

83.0*

97.4

76.5

Capital

Core Tier 1 capital ratio (Basel II) %

n/a

16.4

16.2

Common Equity Tier 1 capital ratio (Basel III) %

n/a

15.4

15.3

Leverage ratio (Basel III) %

n/a

3.5

3.7

Customer balances

Gross mortgage lending £bn

3.7

4.9

5.6

Mortgage balances £bn

13.9

16.8

19.6

Credit card balances2£bn

-

-

1.0

Savings balances £bn

16.2

18.0

21.1

Total assets£bn

19.6

21.8

24.6

Loan-to-deposit ratio%

83.6

93.1

96.4

Net interest margin3%

0.35

0.54

1.26

1 2011 results are presented as if Northern Rock plc had been acquired on 1 January 2011 except for * which are the statutory results for Virgin Money Holdings (UK) Limited ahead of the acquisition of Northern Rock plc.

Virgin Money’s business ambition is to make “everyone better off” – this philosophy underpins our approach to business as we aim to offer good value to customers, treat employees and corporate partners well, make a positive contribution to society and deliver a profit to our shareholders.

Virgin Money is the official sponsor of the London Marathon, the biggest annual one-day fundraising event in the world. Virgin Money aims to help runners raise over £250 million over 5 years and will use its infrastructure, online capability and financial expertise to deliver that through Virgin Money Giving.